IRB Infra gains on bagging provisional completion certificate for road project

IRB Infrastructure Developers rose 1.43% to Rs 244.10 at 10:45 IST on BSE after the company said it received provisional completion certificate for Ahmedabad-Vadodara road project.

The announcement was made during trading hours today, 7 December 2015.

Meanwhile, the BSE Sensex was down 65.42 points, or 0.26%, to 25,464.69.

On BSE, so far 96,000 shares were traded in the counter, compared with an average volume of 2.15 lakh shares in the past one quarter.

The stock hit a high of Rs 245.65 and a low of Rs 241.55 so far during the day. The stock hit a 52-week high of Rs 275.50 on 30 January 2015. The stock hit a 52-week low of Rs 197.20 on 25 August 2015.

The stock had outperformed the market over the past one month till 7 December 2015, rising 0.99% compared with 2.80% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 13.25% as against Sensex's 2.56% rise.

The mid-cap company has an equity capital of Rs 351.45 crore. Face value per share is Rs 10.

IRB Infrastructure Developers announced that its wholly owned subsidiary, IRB Ahmedabad-Vadodara Super Express Tollway (a special purpose vehicle or SPV), was issued a provisional completion certificate by the competent authority on 4 December 2015. Consequently, the SPV has started toll collection on National Highway (NH)-8 arm of this project from 6 December 2015. The SPV is already collecting toll on Ahmedabad Vadodara Expressway (NE-1) arm since January 2013.

This project is the largest project in the company's portfolio. Its concession period, including construction period, is 25 years with an estimated Project Cost of Rs 4880 crore. The company had bagged this Project from the National Highways Authority of India (NHAI) on a Premium of Rs 309.60 crore which would be increased by 5% year-on-year (YoY) for the duration of the concession period.

The Project involved upgradation of existing section of NH-8 between Ahmedabad and Vadodara from two lane highway to a six lane super expressway and value addition to the existing Ahmedabad Vadodara Expressway. The SPV has constructed 15 Flyovers, 4 Bridges, 31 underpasses and additional Railway over bridges on the NH-8 arm.

The SPV has completed construction and commenced toll collection on NH-8 one month ahead of the scheduled date of completion.

On consolidated basis, IRB Infrastructure Developers' net profit rose 22.5% to Rs 149.11 crore on 30.1% rise in net sales to Rs 1149.17 crore in Q2 September 2015 over Q2 September 2014.

IRB Infrastructure Developers undertakes development of various infrastructure projects in the road sector through several special purpose vehicles.

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